Transurban has reached agreement with Macquarie Infrastructure Partners to acquire 100 per cent of the equity interests in the A25, located in the Montreal metropolitan area, for CAD 840 million plus transaction costs of CAD $18 million. The A25 is a 7.2km toll road and bridge connecting Northern Montreal across the Rivière des Prairies to commercial and residential areas. It opened in May 2011 with a concession to September 2042.
Transurban will assume responsibility for the management and operations of the A25 after financial close, which is targeted for Q4 FY18 and is dependent on Investment Canada Act approval.
Key points about the A25:
- Opened to traffic in May 2011
- Toll road and bridge with concession ending in 2042
- Concession with the Ministère des Transports, de la Mobilité durable et de l’Électrification (MTQ) features hybrid toll and availability payment plus guaranteed toll income
- 1.2km, 6-lane bridge over the Riviere des Prairies, total of 6.0km of 4-lane roadway on either side of the bridge
- Average annual daily traffic of 44,616 in FY16 and 46,535 in FY17
- Free-flow electronic tolling system
- Single toll point with peak and off peak toll rates
- Toll escalation by Canadian Consumer Price Index annually and traffic volume triggered increases
- Commercial vehicles tolled per axle
Transurban Chief Executive Officer Scott Charlton said the acquisition of the A25 and entry into the Montreal region is aligned with Transurban’s strategy of focusing on heavily congested, urban areas with strong demographics.
“Montreal is an attractive second market for Transurban in North America as a developed economy with a growing population and a government that embraces innovative transportation solutions to tackle the region’s congestion problems.”